By Alastair Sharp and Solarina Ho
TORONTO, March 18 TMX Group Ltd Chief
Executive Thomas Kloet is set to retire at the end of August
after six years as head of the company that operates the Toronto
Stock Exchange, a period that included its acquisition by a
consortium of some of Canada's biggest banks and pension funds.
Kloet, a 30-year veteran of the exchange industry, will step
down Aug. 31, the company said late on Monday.
Analysts said they did not expect Kloet's successor to
embark on a major strategic shift. They said the new chief
executive could come from within the company, from one of the
banks or pension funds in its ownership consortium, which is
known as Maple Group, or from completely outside TMX circles.
"I don't think the Maple Group would be hell-bent on drastic
change in leadership or strategic direction for the company,"
said Shubha Khan, an analyst at National Bank Financial.
"I think that whoever succeeds Tom Kloet, be it internally
or externally, will follow the path Tom Kloet had embarked on
from the outset," he said.
Kloet became chief executive of TMX in 2008 and led the
company through a significant expansion, including opening
offices in New York, London, Sydney and Beijing.
TMX spokeswoman Carolyn Quick said Kloet intended to remain
hands-on until his last day and then planned to spend more time
at his new home in South Carolina and expand his work as a board
member at other companies.
While the TMX's fortunes have improved since the financial
crisis, it has struggled more than many stock markets around the
world due to its reliance on new issues and capital-raising by
the cyclical energy and mining sectors.
"Tom managed the business through a very challenging period,
and TMX and the industry continue to face a lot of challenges,
particularly in Canada because of the capital markets'
dependence on the resource sector," CIBC World Markets analyst
Paul Holden said.
In early 2011, TMX agreed to a multibillion-dollar friendly
takeover by the London Stock Exchange Group, a deal
later thwarted by a hostile rival bid from Maple Group.
LSE and TMX, whose attempted tie-up came during a period of
consolidation attempts by the world's top exchanges, scrapped
their deal when it failed to win over shareholders.
Kloet eventually accepted the Maple consortium's C$3.8
billion ($3.4 billion) takeover offer and became CEO of the new
company in 2012. He guided its integration with the Canadian
Depository for Securities Ltd and Alpha Exchange Inc, which were
owned by members of the consortium.
Before that deal, Kloet led the integration of the Montreal
Exchange into TMX. TMX had acquired the Montreal market in late
Before joining TMX, Kloet was the first CEO of Singapore
Exchange Ltd. He also had been a director of the
Chicago Mercantile Exchange. He is currently chairman of the
Boston Options Exchange.
TMX shares were up 0.4 percent at C$51.75 early on Tuesday